Southwest Gas Storage Company

First Revised Volume No. 1

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Effective Date: 12/15/1999, Docket: RP00- 58-000, Status: Effective

Original Sheet No. 144 Original Sheet No. 144 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

16.FUEL REIMBURSEMENT ADJUSTMENT

The Fuel Reimbursement percentages under Rate Schedules FSS and ISS

shall be adjusted downward to reflect reductions and may be adjusted

upward to reflect increases in fuel usage and lost and unaccounted for

gas in accordance with this Section 16.

16.1 Filing of Fuel Reimbursement Adjustment

(A) Effective Date of Adjustment

The effective date of each Fuel Reimbursement Adjustment

shall be November 1 and April 1.

(B) Filing Procedure

At least thirty (30) Days prior to the effective date of

adjustment, Southwest shall file with the Commission and

post, as defined by Section 154.2(d) of the Commission's

Regulations, a schedule of effective Fuel Reimbursement

Quantities, as determined in accordance with Section 16.2

hereof, together with supporting documentation.

(C) Fuel Reimbursement Adjustment Period

The Fuel Reimbursement Adjustment Period shall be the billing

periods beginning with each Effective Date of Adjustment.

16.2 Computation of Effective Fuel Reimbursement Percentage

The effective Fuel Reimbursement Percentage shall be the sum of

the current Fuel Reimbursement Percentage and the Annual Fuel

Reimbursement Surcharge.

16.3 Computation of Current Fuel Reimbursement Percentage

The current Fuel Reimbursement Percentage shall be determined on

the basis of (1) the estimated Quantities of Gas delivered to

Southwest for the account of Shippers under Rate Schedules FSS and

ISS and (2) the projected Quantities of Gas that shall be required

for fuel usage and the lost or unaccounted for gas.